Indonesian Ministry Of Finance: Will Not Increase Consumption Tax On Tobacco Products Next Year And Turn To Other Tobacco Control Policies

Indonesian Ministry of Finance: Will not increase consumption tax on tobacco products next year and turn to other tobacco control policies

Indonesian Finance Ministry officials said that the 2024 excise tax rate on tobacco products will remain unchanged in 2025, and other policies such as adjusting retail prices will be considered to reduce smoking.

According to Business Times on September 23, Indonesian Finance Ministry officials said that Indonesia will not increase the excise tax rate on tobacco products next year (2025), and will consider other policies to reduce smoking, including adjusting retail prices.

Askolani, director general of the Tariff and Excise Department of the Indonesian Ministry of Finance, revealed that the 2024 excise tax rate on tobacco products will be extended to 2025.

"We will not adjust the tax rate next year, but we will seek other alternative policies, including adjusting retail prices."

He did not disclose when these policies will be introduced.

Indonesia increased the excise tax rate on tobacco products by an average of 10% in 2023 and 2024 respectively to control cigarette consumption. According to a 2023 survey by the Indonesian Ministry of Health, 70 million people out of a population of approximately 280 million are smokers, of which 7.8% are smokers aged 10 to 18.